ITR-U 48-Month Window – CBDT Extends Updated Return Time

  • Blog|News|Income Tax|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 21 May, 2025

Latest from Taxmann

ITR-U 48-month window

Notification No. 49/2025, dated 19-05-2025

1. Legislative Update at a Glance

  • Finance Act 2025 has amended Section 139 (8A) of the Income-tax Act, 1961, extending the window to furnish an Updated Return (ITR-U) from 24 months to 48 months after the end of the relevant assessment year (AY). The change takes effect 1 April 2025.
  • Consequential changes to Section 140B introduce two new slabs of “additional tax” for returns filed in the 3rd and 4th years of the window.
  • The Central Board of Direct Taxes (CBDT) has revised Form ITR-U to accommodate the longer window.

2. Form ITR-U—What’s New?

  1. Header & Compliance Year – Drop-down now displays 48 months.
  2. Additional-Tax Calculator – Auto-picks 25 %/ 50% /60%/ 70% per filing date.
  3. Reason Codes – No change in 8 permissible reasons (e.g., unreported income, wrong head).
  4. Pre-fill Integration – XML/JSON import enabled for earlier filed ITR.
  5. Validation Rules – Return blocked if notice u/s 148A issued after 36 months.

3. Who Cannot Use the 48-Month Window?

  • Cases involving seizure/search proceedings for the year.
  • Returns declaring losses or lowering existing tax liability/refund.
  • If updated return leads to outstanding prosecution under Chapter XXII.
  • Where assessment/re-assessment is already completed or pending.

4. Filing Workflow (E-Filing Portal)

e-Path – Login ▸ Authorised actions ▸ e-File ▸ Income-tax returns ▸ File Updated Return (ITR-U)

  1. Select AY in the 48-month list.
  2. Import Pre-fill of earlier ITR (if any).
  3. Enter Revised Income head-wise.
  4. System Auto-computes tax, interest & additional tax.
  5. Pay Self-Assessment Tax via Challan 280 (code 300) and upload challan.
  6. Verify using DSC/e-verifying options.

5. Practical Implications & Planning Tips

  • Longer Cushion for Compliance – SMEs and individuals with overseas income mismatches now get four full years to regularise.
  • Cost–Benefit Check – Additional tax rates jump steeply after 24 months; earlier filing remains cheaper.
  • Cash-Flow Modelling – Indirect interest carry-over (234B/234C) plus 70 % levy in 4th year may wipe out benefit—run projections before delaying.
  • Audit Trail – Updated returns trigger unique DIN; maintain worksheets and proof of tax computation for 8 years.
Click Here To Read The Full Notification

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied